Irish Competition Authority Decisions

1. Notification was made by Power Leisure Ltd on 30 September 1992 with a request for a certificate under Section 4(4) of the Competition Act 1991 or, in the event of a refusal by the Competition Authority to issue a certificate, a licence under Section 4(2), in respect of a lease between Shannon Town Centre Company Ltd And Power Leisure Ltd.

2. The notification concerns the lease of Shop Unit No. 19 at Shannon Town Centre, Shannon, Co. Clare between Shannon Town Centre Company Ltd as Landlord and Power Leisure Ltd. as tenant.

3. Shannon Town Centre Co. Ltd is engaged in the letting of shop units at Shannon Town Centre. Power Leisure Ltd, trading under the name Paddy Power, is a Licensed Bookmaker operating 71 bookmakers' shops at various locations in Ireland including Shannon Town Centre.

4. The notified shopping centre lease was executed on 26 June 1972 for a period of 21 years from 1 January 1972 between Shannon Town Centre Company Ltd and Corcorans Management Ltd. The restricted user clauses in the lease are as follows:

(a) Under clause 10 the tenant covenants "To use the demised premises for the purpose of the business of Turf Accountancy only and not without the Landlord's consent in writing which shall not be unreasonably withheld to use or permit or suffer the same or any part thereof to be used for any other purpose."

(b) Under clause 12 the tenant covenants "Not to assign, transfer, under-let, or part with, or share the possession or permit the occupation by a Licensee or Concessionaire or permit any under-letting......in respect of (a) the whole of the demised premises without the previous consent in writing of the Lessor (but so that such consent shall not be unreasonably withheld) or (b) any part of the demised premises under any circumstances whatsoever......"

(c) As an addition to clause 2 of the Landlord's covenants "The Lessor agrees not to permit any other Unit or Units of Phase 1 of the Shannon Town Centre to be used as a Turf Accountant's Office as long as this tenancy shall continue to be solely used as a Turf Accountant's Office."

In addition, there are a number of other standard restrictive covenants and obligations in the lease.

5. The Authority considers that Shannon Town Centre Co. Ltd and Power Leisure Ltd are undertakings and that the notified lease is an agreement between undertakings. The agreement has effect within the State.

6. The Authority considers that the notified agreement, and its restricted and exclusive user clauses, and the other standard restrictive clauses and obligations, does not have the object or effect of preventing, restricting or distorting competition in trade in any goods or services in the State or in any part of the State, for the reasons given in the Notice of the Authority of 2 September 1993 in respect of shopping centre leases (Iris Oifigiuil 10 September 1993, pp. 665-667). The Authority therefore considers that the notified agreement between Shannon Town Centre Company Ltd and Power Leisure Ltd does not offend against Section 4 (1) of the Competition Act 1991.

7. The Competition Authority has issued the following certificate.

The Competition Authority certifies that in its opinion, on the basis of the facts in its possession, the agreement between Shannon Town Centre Company Ltd and Power Leisure Ltd in relation to the lease of the premises at Unit 19 Shannon Shopping Centre, Shannon, Co. Clare notified under Section 7 on 30 September 1992 (notification no. CA/395/92E), does not offend against Section 4 (1) of the Competition Act, 1991.

For the Competition Authority

Des Wall

Member

5 October 1993